Agthia Group P.J.S.C., one of UAE’s leading food and beverage groups (ADX: Agthia), released the Company’s financial results for the First Quarter of 2013. The Company achieved a robust performance as reflected by the strong sales and profit growth. Net sales during the first three months grew by 16% year on year to reach AED 361 million, while net profits reached AED 37 million, recording a solid 38% rise year on year.

Amongst the highlights of the report, Agthia’s Consumer Business Division achieved strong 29% net sales growth year on year, while the Agri Business Division net sales grew by 10% over the same period. The Group’s priorities on growing core businesses remained strongly focused on further expanding the distribution, maintaining strong volume growth momentum and driving consumer products’ export market growth.

A consumer validated study on Yoplait fresh dairy products has been completed and the re-launch of Yoplait portfolio with new look packaging and additional flavors are planned for April 2013.

In Turkey, newly branded Alpin spring water was launched successfully in February 2013 with all focus currently being on gaining distribution. Plans are on track for the commissioning of the five and ten liter new bottling line in 2013 and the launching of Alpin water in the UAE during second part of the year. Poultry feed production capacity expansion is also on track to commence production in April 2013, while flour milling capacity increase will be operational in Q1 2014 and the new high speed bottling line will be commissioned in Q2 2014. The new initiative of frozen baked product remains on track for launch in Q4 this year.

Commenting on the results, His Excellency Rashed Mubarak Al Hajeri, Chairman of Agthia Group said, “We are very pleased with our performance during Q1 2013 across all categories. Despite the challenging conditions facing the food and beverage markets, we are moving on our long-term strategy and are optimistic of good business performance and growth in 2013.”

Ilias Assimakopoulos, Chief Executive Officer of Agthia, added, “Our focus during the year will continue to be growing core businesses, consolidating and growing diversification initiatives while pursuing regional expansion and cost saving initiatives. Our performance for the first quarter has been very encouraging with strong volume, sales and profit growth, and we look forward to carrying this momentum through the year.”

Sales

Net sales for the first three months at AED 361 million grew strongly at 16% year on year. This is attributable to 29% sales growth delivered by the Consumer Business Division and 10% growth achieved by the Agri Business Division.

Net Profit

Net profit of AED 37 million for the first three months reflects a solid growth of 38% year on year. This strong performance was driven by higher volumes and improved gross profitmargin resulting from cost saving initiatives, lower input cost and higher flour prices in Northern Emirates.

Division’s net profit at AED 9.4 million grew by 36% year on year. Water & Beverages segment’s net profit grew by 41%, driven by 200 basis point gross profit margin improvement as a result higher volumes and lower PET cost; while Food segment net loss AED 5.9 million is attributed to the fresh dairy product and Egypt operation.

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Background information

Agthia Group is a leading Abu Dhabi based food and beverages group established in 2004. The company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol “Agthia”. 51 percent of the company’s shares are held by General Holding Corporation, an Abu Dhabi Government entity, with the balance held by individual and institutional investors.

Agthia Group is a leading Abu Dhabi based food and beverages group established in 2004. The company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol “Agthia”. 51 percent of the company’s shares are held by General Holding Corporation, an Abu Dhabi Government entity, with the balance held by individual and institutional investors.

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Launched in 2007, Raee is a public relations consultancy that specializes in reputation management, positioning and re-positioning strategy, crisis communication and recovery, integrated communications, and events. Drawn from an international cross-section of journalism, PR and creative professionals, Raee's team is fuelled by passion and guided by fact.